What is cryptocurrency airdrop : The Complete Guide

What is airdrop

If you are into cryptocurrency I'm sure you must have heard about airdrops. And you are someone new then you might probably thing what is an airdrop. During natural disaster, war time airdrops are carried out to provide essential supplies to people trapped in those area. But in cryptocurrency airdrop have a totally different meaning and today we will see what exactly is an airdrop and how we can make money from cryptocurrency airdrops . Yes you can make a lot of money by airdrops so keep reading.

Airdrop in cryptocurrency world means distribution of cryptocurrency tokens to the wallets of some users for free. These are mostly done up new tokens.

How cryptocurrency Airdrop works ?

There are basically two types of airdrops, one where the tokens are distributed to all the wallets and one where you need to perform some task in order to get some tokens. Most of the time a company will announce their airdrop in their website and ask their users to do certain task like sharing about their project in social media, or inviting their friends to join the airdrop etc.

After you perform their task then they will give you their tokens which might be of worth $5- $10 etc. You might say that it is a very low amount but once the project grows you value too increases. For example few months back a company did an airdrop . Initially its value was low but after few days their airdrop value was more than $2000. Yes that’s the power Airdrop.

Reasons for carrying out an airdrop

There are a lot of reasons why companies does airdrops. It can be for creating hype around their new project which is very much needed if they are doing an ICO or may be to reward their loyal customers.

Here are some of the reasons why companies carry out cryptocurrency airdrops

1. As a Reward for Loyal Customers
2. To Generate Lead Database
3. To Create Awareness About a New Cryptocurrency
4. Promotion in the Community

How to take part in airdrops

Now here comes the important part. How to exactly take part in cryptocurrency airdrops ? Here is a step by step guide on how you can join airdrops and what are the things that you need to have.

1. An Ethereum Wallet: The wallet cannot be one that is on an exchange. It has to be a personal address that is ERC20 compatible because most of the tokens that are airdropped are ERC20 tokens, which are or were originally Ethereum-based ICOs. I suggest using MetaMask or MyEtherWallet to get started immediately, but in the long-term I always recommend getting a hardware wallet like the Ledger Nano S.

2. A Telegram Account : I’m sure there are amazing reasons why Telegram is the chatting tool of choice for many of these ICOs. The coins want to boost the audience count. Usually, these airdrop coins will also require you to sign up for their Telegram accounts. Until you receive the coin in your Ethereum wallet, do not leave the Telegram accounts or you risk disqualification for the airdrop.

3. A Twitter Account : Similar to the reasons behind the Telegram account, many of the airdrop coins will also require you to follow them on Twitter. Some of them will even ask you to retweet some tweet.

4. An email address : Sometimes airdrops will ask for your email, too. If you don’t feel comfortable with giving them your real email, just create a spam one. Remember the password, though; some of them actually ask you to confirm your email.

Airdrops are a great way to make some money without much of work. You never know which token will rise and give you good returns so it is advisable to join many airdrops.

Bonus

If you have made it till the end then i'm sure you are fully interested in airdrops and want to join one. So you might be asking how to know know which tokens are doing airdrops ? So we at TheCoinmill have created a telegram channel where we share updates related to airdrops, cryptocurrency news etc daily. Go join it. : t.me/thecoinmill